NONGFU SPRING(HK:09633) Xin Lang Zheng Quan·2025-03-26 02:55Core Viewpoint - Nongfu Spring has experienced a significant decline in its bottled water business, leading to a stagnation in overall revenue growth and a sharp drop in stock price [1][2]. Group 1: Financial Performance - In 2024, Nongfu Spring reported total revenue of 42.896 billion yuan, a year-on-year increase of 0.5%, and a net profit attributable to shareholders of 12.123 billion yuan, up 0.4% [1]. - The bottled water segment saw a drastic revenue decline of 21.27%, generating 15.952 billion yuan, which now accounts for only 37.2% of total revenue [2]. Group 2: Market Dynamics - Tea beverage products have emerged as the largest revenue source for Nongfu Spring, with a growth of 32.28%, increasing its revenue share to 39% [2]. - Negative public sentiment surrounding the brand, particularly due to past controversies and rumors, has significantly impacted sales, with bottled water sales experiencing a continuous decline of over 20% for four months from March to June last year [2][3]. Group 3: Strategic Responses - To counteract the negative publicity, Nongfu Spring has launched new products like green bottle purified water and increased advertising and promotional expenditures [2]. - The company has seen a rise in accounts receivable to 1.8 billion yuan and a substantial increase in inventory to 5.013 billion yuan, with inventory turnover days rising from 54.23 to 81.14 days [2]. Group 4: Competitive Landscape - Competitors such as Yibao are accelerating their IPO processes, while Wahaha is enhancing its market presence through new product placements, intensifying competition in the bottled water market [3].